Austrian companies optimistic – As many as 90% willing to invest in Serbia again, 66% expect bigger turnover in 2018

A survey of the conditions of doing business in Serbia in 2017 shows that 66% of the Austrian companies are convinced that their turnover will continue to grow in the upcoming year, that 50% expect to increase their investments in 2018 and that as many as 90% are willing to invest in Serbia again, looking from the current vantage point.

The survey was conducted for the sixth time by the commercial department at the Embassy of Austria – Advantage Austria, and the questions pertained to the current conditions of doing business in Serbia from the position of Austrian investors.

A total of 80 companies, 34% of which have a turnover of up to a million euros and 20% of which have a turnover of over EUR 20 million, took part in the survey. The majority, around 44%, belong to the service sector, followed by Austrian subsidiaries (40%), whereas the remaining companies belong to the production sector.

Economic environment and perspective

Around 35% of the companies believe that the current economic situation in Serbia is better than last year. This is a considerable improvement compared to 2016, when only 27% companies believed that the economic situation had improved during the surveyed period.

However, the share of the companies that believe that the situation is worse has remained pretty constant since 2016, once again making up around 16% of the total number, it was said at the presentation of the results of the survey, which took place in Belgrade on Thursday, December 14, 2017.

When it comes to Serbia's economic perspective for 2018, Austrian businessmen are optimistic: 45% of the subjects expect the situation to improve in the upcoming year. Around 41% believe that it will remain as it is, whereas 14% of the Austrian companies expect the situation to get worse.

Half of subjects increase number of employees

The majority of the Austrian companies, 70% of them, are satisfied with the turnover and jobs contracted in 2017, whereas a half of them has more employees than last year, the survey shows.

– As many as 66% of the subjects believe that their turnover will increase in 2018, and a half of the expect to invest even more next year – stated Erika Teoman-Brenner, commercial adviser at the Embassy of Austria.

Improvement of legal security necessary

The Austrian companies once again pointed out the fields in which they expected the business conditions to improve, with legal security at the top of the list. As many as 65% of the companies believe that this area needs to improve.

Around 53% of them would like for there to be less bureaucracy in Serbia, whereas 44% want stronger anti-corruption measures. Also, 39% of the companies estimate that the country needs better infrastructure.

The subjects showed that they were mostly satisfied with the employees' qualifications, but 56% believe that there is a problem of availability of qualified workforce, whereas as many as 87% of them are interested in dual education, that is, in training interns in line with the dual system education such as exists in Austria.

Both in 2016 and 2017, 90% of the subjects said that they would invest in Serbia again.

Mirko Ilic, Managing Director of cargo-partner Serbia and Goran Jovanovic, CEO of Tagor Electronic Nis, took part in the presentation of the results of the survey.

Ambasada Republike Austrije

Trgovinsko odeljenje Ambasade Austrije

Tagor Electronic d.o.o Niš

Advantage Austria

Austrian companies in Serbia

Austrian investors in Serbia

legal security

bureaucracy

dual education

Erika Teoman Brenner

cargo partner

Mirko Ilic

Goran Jovanovic

Tagor Electronic Nis

Tagor Electronic

Austrian investments in Serbia